Suggested Letter To All Shippers

 
TO YOU, OUR FORWARDER CLIENT:

     Our job at Allcovered is to protect you… and to help you avoid problems before they come up whenever we can. NOTE: Only you can know the best way to handle your Shippers and Consignees and their insurance. That said…
     Your Bill of Lading should specifically state the limited Liability you accept when moving goods for others. BIFA, FIATA, and NCBFAA Bill of Lading wordings all state that forwarders are not responsible to place cargo insurance for clients without instructions in writing from the client.
     But too often Shippers do not read the BOL wordings. Courts too often side with the Shipper who claims "I did not know," unless you can prove you explained the limitations of coverage under BOL Liability and the Shipper continued to refuse the protection of cargo insurance.
     To protect you, we offer the following suggestions.

TEACH
AND
SELL

     Show the Shipper our "Shipper's Guide to Insurance" video.
     (Video One > CLICK < )
     You can stream it via the Internet to the Shipper's computer, or play it from CD (CD available on request).
     We also have a "Shipper's Guide" booklet that can be customized for your company that explains this as well.
     Some of our clients have told us that when they use both the video and the booklet during sales presentations they are now closing nearly half their sales calls.
   

IF SHIPPER STILL REFUSES

    Get It In Writing.
    
If anything goes wrong and you move something that was not insured, too often the Shipper or Consignee will say they told you to insure it... or that they did not understand the limitations of coverage. Then either there are hard feelings or a lawsuit or you are out the money or you lose a client.
     My strong suggestion to you is that you place responsibility for insurance on your clients… not yourself. This saves you hard feelings, lost clients, misunderstandings, and lawsuits.
     Here is one way, the easiest I know, to transfer the risk and responsibility.
     Send all Clients a letter with the following:
 

> begin sample letter <
cut & paste onto your stationary


     In order to better serve you, to cut the amount of your time we require when we move goods for you, and to better protect you, we ask that you choose one of the following options.
     Please keep in mind that without cargo insurance protecting your goods while in transit, you would receive very little money for any damaged or lost goods, as noted in our Bill of Lading and explained to you.

Please circle your choice and fax it back to us by ______ (deadline):

  • A)- I always want full coverage cargo insurance on my shipments.

  • B)- I always want the more limited Clauses-C coverage. I understand this will only pay for losses from perils specifically named in ICC Cargo Clauses C.

  • C)- I never want insurance on my shipments.

  • D)- I want insurance on a case-by-case basis. I understand that UNLESS I NOTIFY you via email or fax NOT TO INSURE, YOU WILL PLACE INSURANCE on my shipments for my protection, and I will be liable for these insurance costs.

  • E)- I want insurance on a case-by-case basis. I understand that UNLESS I NOTIFY you via email or fax TO INSURE, YOU WILL NOT PLACE INSURANCE on my shipments for my protection.

Signed: _________
Dated: _________

Fax completed form to: xxx-xxx-xxxx
 

> end sample letter <
cut & paste onto your stationary

 

      No simple letter can offer you complete protection, but this will help protect you if there is ever some question as to whether or not you were supposed to insure a shipment for a client.

     Sincerely,

         Mike Miller
         mike.miller@allcovered.net

 
 
Are Your Current Providers Helping You Like This?
     At Allcovered we provide information and training, through documents like this one, our weekly newsletter and other methods.
     It is our way of helping you stay ahead of your competition and grow your business.
     We hope you agree that we go much farther than our competition in our service to you.
     We want to earn YOUR business.

AllCovered.net...     We have logistics allcovered

 

 
 

Contact Us

Debbie Miller
Customer Service - Allcovered.net
Ocean Marine Division; Allen Insurance Group
Voice: +1.478.825.5566 Ext. 108
E-Fax: +1.419.715.4723
Email: debbie.miller@allcovered.net


     

Last Updated
06/08/2009 02:20:00 PM

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